The folder name matches the VPS version number, year, month,day,versions issued, etc. so that folder would be 100127-0 VPS version number, so that is the current one and you may have the previous one also folder 1001261 or = 100126-1 VPS version number.
The Update relates to you receiving a VPS update and a new folder will be created to contain all that information (much of it duplicated from the previous current folder).